Senior Member
Join Date: May 2007
Location: Highland Park, NJ, USA
Posts: 3,798
Bikes: "Hildy", a Novara Randonee touring bike; a 16-speed Bike Friday Tikit; and a Specialized Stumpjumper frame-based built-up MTB, now serving as the kid-carrier, grocery-getter.
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I agree with Johnny... get the old bike fixed up and ride it for a bit. My LBS (local bike shop) does very good work, and they charge around $80 for a pretty extensive tune-up although I've paid as little as $50.
Get the bike safe to ride on and adjusted for you (saddle height, shoulder-to-handlebar distance) and see how you do. You'll have a better idea of what you need after riding for a bit.